Quest Rare Minerals Ltd announced an agreement with Straightline
Aviation (SLA) to provide dedicated air services for the transport of
ore concentrate, supplies and personnel using Lockheed Martins Hybrid
Airships. The airships will provide shuttle transportation between
Quests Strange Lake complex mine site in Northern Qubec and
Schefferville, a town with a direct rail link to the Port of Sept-Iles.

Under the Memorandum of Understanding (MOU), SLA will operate a
fleet of seven of the worlds first heavy-lift cargo Hybrid Airships, the
LMH-1. The airships will transport personnel, critical supplies for mine
operations, and carry more than 200,000 tonnes of rare earth ore
concentrate annually for delivery to Quests Bcancour refining
facilities. Rare earth metals are critical to hundreds of high tech
applications, many of which define our way of life and are key to the
emergence of green technologies.

Developed and built by Lockheed Martin, the LMH-1 is well suited to
Quests transportation challenges due to its remote northern Qubec mine
site location. The airship has the ability to land on virtually any
surface including snow, ice, gravel and even water, with no runways
required or other expensive infrastructure. The helium-filled,
heavier-than-air airships can carry 20 metric tons of cargo and up to 19
passengers. Both the U.S. Federal Aviation Administration (FAA) and
Transport Canada have agreed on the newly developed Hybrid Airship
certification criteria, which is being used to complete the type
certification. First commercial deliveries are scheduled in 2019.

Hybrid Airships combine the technology of lighter than air aircraft
with airplanes, helicopters and hovercraft. Helium provides 80 percent
of the lift, while the remaining lift comes from the aerodynamic shape
of the aircraft and its four thrust vectoring engines. The airship also
features a unique hovercraft-like Air Cushion Landing System that
facilitates taxiing and grips the craft firmly on the ground.

The airships present a cost-effective and environmentally-friendly
solution to Quests transport challenges. The LMH-1 is not only designed
to use less fuel, emit less carbon dioxide and produce less noise than
conventional aircraft, it also eliminates the need for costly
ground-level infrastructure, avoiding impact on the areas wildlife
habitat compared to road transport and trucking along a road corridor to
the Labrador Sea coast.

This new transportation solution will also stimulate employment and
business opportunities for regional and Indigenous communities
increasing the socio-economic benefits to the area around the mine site.

The service agreement represents a value of approximately US$ 850
million, including fuel costs, over a 10-year period that starts in
2019, with further extensions of up to 20 additional years in line with
the current projected life of the mine.

Pierre Lortie, Executive Chairman of the Board, Quest

"Quest and SLA make ideal partners we are well positioned to
fully leverage the cost efficiencies and environmental advantages of the
LMH-1, and are truly excited to be among the first companies to
implement such an innovative transport solution.

Mark Dorey, Chief Operating Officer, Straightline

We are looking forward to working with Quest, and believe that our
Hybrid Airships will provide significant benefits in reaching remote
locations such as the Strange Lake complex. Removing the need for
expensive, intrusive infrastructure, it is a significant step in
re-defining the way transport works in remote regions.

"I am thrilled to see Lockheed Martin's advanced
technology coming to the province of Quebec and indeed being sought
after to solve transportation challenges in some of the most isolated
and northern regions of Canada. It is an ideal country to use the highly
innovative Hybrid Airships and I applaud the collaboration between
Hybrid Enterprises, Straightline Aviation and Quest Rare Minerals in
pursuing such an environmentally-friendly solution in Canada."